Mortgage Demand Down as Summer Ends

September 24, 2009

Source: Mortgage Bankers Association

Mortgage applications slowed as summer ended and potential first-time buyers wondered whether they would be able to settle in time to receive the federal home ownership tax credit, which expires Dec. 1.

The Mortgage Bankers Association index declined 8.6 percent last week on a seasonally adjusted basis, including an adjustment for the Labor Day holiday. On an unadjusted basis, the index declined 18.3 percent compared with the previous week and fell 18.7 percent compared with the same week a year ago when the Labor Day holiday fell nearly a week earlier.

Mortgage interest rates movements were as follows:

  • 30-year fixed-rate mortgages increased to 5.08 percent from 5.02 percent.
  • 15-year fixed-rate mortgages decreased to 4.41 percent from 4.45 percent.
  • 1-year ARMs decreased to 6.61 percent from 6.69 percent.

[Editor's note. Real estate industry groups are supporting efforts by members of Congress to extend the tax credit prior to its expiration. More information on this effort is available at REALTOR.org.]

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